Feature

Betting on Brazil

The world's sixth-largest economy has hit a rough patch, but the future looks bright, given a rising middle class. Where to invest in 2013.

The carnival is over in Brazil, at least for the next six months. After surging 7.5% in 2010, the world's sixth-largest economy is expected to grow just 1.5% this year and 4% in 2013, amid slowing global demand for natural resources and a sluggish industrial sector.

Reflecting these challenges, the country's stock market has been one of the worst performers in 2012, with a year-to-date gain of 2.9%, and Brazil's currency, the real, dropping sharply in value against the U.S. dollar. If the government, led by center-left...